School Breakfast and Lunch Costs: Are There Economies of Scale?
On a given school day, over 31 million lunches and 10.1 million breakfasts are served to children in participating American schools through the USDA National School Lunch and School Breakfast Programs. The United States Department of Agriculture reimburses schools for some or all of their costs. Reimbursement rates are based on an average meal cost, adjusted each year based on the national CPI for food away from home. There is no adjustment for school characteristics such as size, although there can be as much as a seven-fold difference in the number of meals served, from the smallest to largest schools. Yet, economists have shown that economies of scale exist in a variety of commercial and industrial settings. Thus, we use a multiproduct translog cost function to estimate the costs of school breakfasts and lunches. Results indicate substantial and persistent economies of scale across 21 locations for school breakfasts but few unexploited scale economies in school lunches.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel Bilodeau & Pierre-Yves Crémieux & Pierre Ouellette, 2000. "Hospital Cost Function In A Non-Market Health Care System," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 489-498, August.
- Ollinger, Michael & Ralston, Katherine L. & Guthrie, Joanne F., 2010. "School Food Service Costs: Does Location Matter?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60690, Agricultural and Applied Economics Association.
- MacDonald, James M. & Ollinger, Michael & Nelson, Kenneth E. & Handy, Charles R., 2000. "Consolidation In U.S. Meatpacking," Agricultural Economics Reports 34021, United States Department of Agriculture, Economic Research Service.
- Ollinger, Michael & MacDonald, James M. & Madison, Milton E., 2000. "Structural Change In U.S. Chicken And Turkey Slaughter," Agricultural Economics Reports 34049, United States Department of Agriculture, Economic Research Service.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:103191. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.